Question

As per IRAC (Income Recognition and Asset Classification) norms, an asset is classified as a 'Loss Asset' when:

Q: Answer-As per IRAC (Income Recognition and Asset Classification) norms, an asset is classified as a 'Loss A...

A Loss Asset is one where the loss has been identified by the bank or auditorsRBI, but the amount has not been written off wholly. It is considered uncollectible.

A It has been an NPA for more than 3 years.

B The collateral value has eroded by more than 50%.

C It is identified as such by the bank or internal/external auditors or the RBI inspection, but the amount has not been written off.

D The borrower has fled the country.

E The borrower's business has been shut down for 6 months.

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As per IRAC (Income Recognition and Asset Classification) norms, an asset is classified as a 'Loss Asset' when:

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